BoE and PRA Publish PS5/19 on Approach for Withdrawal from EU
BoE and PRA published a policy statement (PS5/19) that contains final versions of policy materials on EU Exit Instruments, the related supervisory statements (SS1/19, SS2/19, and SS18/15), and a statement of policy (SoP) titled "Interpretation of EU Guidelines and Recommendations: BoE and PRA approach after the UK’s withdrawal from the EU"; these documents were published as near final on February 28, 2019. PS5/19 also includes supervisory statement on non-binding materials related to the financial market infrastructure supervision. Additionally, BoE has notified that the deadline for a firm to notify PRA that it wishes to enter the temporary permissions regime has passed. The period for notifications set out in the PRA Direction ended on April 11, 2019.
On April 11, 2019, the European Council decided, in agreement with UK, to further extend the period provided for in Article 50(3) of the Treaty on European Union until October 31, 2019. BoE and PRA have not changed the policy or significantly altered the text of the published materials since their publication as near-final. Section B of PS5/19 sets out the limited updates to these materials since they were published as near-final. BoE and PRA are not publishing final versions of their transitional directions and transitional guidance materials published as near-final in Section A of the February 2019 version of PS5/19. In light of the Brexit extension, BoE and PRA will consider whether to make any changes to these directions and guidance materials. BoE will publish further information on this in due course.
However, BoE and PRA have made minor changes to three EU Exit Instruments, SS18/15, and SoP, compared to the versions published as near-final. The changes are to clarify drafting and do not constitute policy changes. The minor changes that have been made to the final EU Exit instruments appended to PS5/19 can be described as follows:
- Clarification changes
- Consequential changes to reflect relevant underlying Statutory Instruments made or laid by HM Treasury or other government departments since publication of the February 2019 version of PS5/19
- Minor administrative and corrective changes to ensure accuracy of PRA Rulebook and the amended Binding Technical Standards (BTS)
All EU Exit Instruments appended to PS5/19 have been finalized and have the commencement date of exit day with one exception. The exception is that Annex BF of the PRA Rulebook: EU Exit Instrument 2019 (Appendix B.2) has a commencement date of July 01, 2019. PRA will provide further updates in relation to this Annex in due course.
Related Links
Keywords: Europe, EU, UK, Banking, Insurance, Brexit, EU Withdrawal, Regulatory and Supervisory Approach, PS 5/19, PRA, BoE
Previous Article
RBI Publishes Enabling Framework for Regulatory SandboxRelated Articles
HKMA Consults on Supervisory Policy for OTC Derivatives Transactions
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
PRA on Regulatory Capital and IFRS 9 Requirements for Payment Holidays
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
HKMA on Fintech Adoption and Innovation by Banks in Hong Kong
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB Consults on Guide for Managing Climate and Environmental Risks
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA Assesses Interlinkages Between Recovery and Resolution Planning
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB Publishes Final MREL Policy Under the Banking Package
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies Amend Interim Final Rule on Transition Period for CECL
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB Releases Results of March Survey on Credit Terms and Conditions
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.
